Astec Industries Inc. (NASDAQ:ASTE), a manufacturer of specialized equipment for asphalt road building, aggregate processing, and concrete production, with annual revenues of $1.28 billion, announced the departure of Jamie E. Palm, the company's Vice President, Chief Accounting Officer, and Corporate Controller. According to a recent 8-K filing with the Securities and Exchange Commission, Ms. Palm will leave the company effective December 27, 2024, to pursue another opportunity.
The company clarified that her resignation was not due to any disagreements with Astec regarding its financial statements, operations, policies, practices, or any accounting matters. Brian J. Harris, Astec's current Chief Financial Officer and principal financial officer, will take over Ms. Palm’s responsibilities as the principal accounting officer following her departure.
Mr. Harris' qualifications and experience were previously detailed in an 8-K report filed on October 7, 2024, which is incorporated by reference into the current filing. His history with the company and understanding of its financial structure positions him to seamlessly transition into the role and maintain continuity in Astec's financial management and reporting processes.
This executive change comes at a time when Astec continues to be a key player in its industry, providing equipment solutions for a range of construction needs. The company is headquartered in Chattanooga, Tennessee, and is known for its contributions to the construction machinery and equipment sector.
The company has demonstrated resilience with a 22.5% price return over the past six months, and InvestingPro analysis suggests the stock is currently undervalued. For deeper insights into Astec's financial health and growth prospects, investors can access comprehensive Pro Research Reports covering 1,400+ US stocks through InvestingPro.
In other recent news, Astec Industries reported Q3 results with mixed performance. The company's net sales slightly decreased to $291.4 million, while adjusted earnings per share (EPS) increased to $0.31. Despite a 4% decline in sales and a 6% decrease in EBITDA year-over-year, gross margins remained stable, and the company reported a positive free cash flow of $19.9 million.
Baird, an independent analyst firm, maintained a neutral rating on Astec Industries but increased the price target from $36 to $40, reflecting a stable view of the company's financial performance. The company's Infrastructure Solutions segment experienced a slight increase in net sales, while the Materials Solutions segment saw a decrease due to high dealer inventory and interest rates.
Astec Industries, under new leadership including CEO Jaco van der Merwe and CFO Brian Harris, has emphasized strategic focus on innovation, operational efficiency, and employee engagement. The company also highlighted plans to expand operations in India and reported a strong liquidity position with $52.7 million in cash and $195.1 million in total available liquidity.
The company expects full-year sales to remain flat, with a Q4 gross margin projected between 24% and 25.5%. Despite a projected moderation in demand, Astec anticipates strong demand in infrastructure solutions into early 2025.
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